BUSINESS PLAN

BIODIESEL

Start-Up Summary

• Clean Fuel of Future (CFF) is a producer of renewable and environment friendly fuel, the biodiesel, delivered from vegetable oils.

• Purpose of the business plan is to attract investment in the creation of biodiesel production plant and rape cultivation farming.

• We offer fuel with the same performance as that of conventional diesel, at competitive price and ecologically safe.

Mission Statement

• CFF is a manufacturing company dedicated to developing better energy solutions for benefit of a whole society. We bring innovative technologies and unlimited supply of energy sources without damaging and polluting environment.

• Our product replaces conventional diesel and becomes the most perspective fuel of 21 century due to its environmental friendliness, renewability and low costs.

Market Analysis

• We are part of the rapidly growing biofuel business, which also includes producers of heating oils and oleochems.

• We believe, that most perspective customers are farms, in-city transport companies and those who need the lowest possible pollution levels in their technological processes: warehouses, owners of generators, etc.

• Our main competitors are the producers of petro diesel.

• Major cost incurred is that of Labor. However labor charges in India are low.

Market Trends

• India's total biodiesel requirement is projected to grow to 3.6 Million Metric Tons in 2011-12

• On 12 September 2008, the Indian Government announced its 'National Biofuel Policy'. It aims to meet 20% of India's diesel demand with fuel derived from plants.

• Bio-ethanol already enjoys concessional excise duty of 16% and biodiesel is exempted from excise duty. No other Central taxes and duties are proposed to be levied on bio-diesel and bio-ethanol.

• Import of Free Fatty Acid (FFA) oils will not be permitted for production of biofuels.

Initiatives taken by Government

• The Indian Railways has started to use the oil (blended with diesel fuel in various ratios) from the Jatropha plant to power its diesel engines with great success.

• In September 2007, the Hindustan Petroleum Corporation Limited (HPCL) joined hands with the Maharashtra State Farming Corporation Ltd (MSFCL) for a jatropha seed-based bio-diesel venture. As part of the project, a jatropha plant would be grown in Nashik and Aurangabad

Production Summary

• Location: Production Unit ideally located close to Nasik Railway station, Accessible by rail and road.

• Infrastructure: Administrative building of 100 square meters, the plant building for the biodiesel production of 1,000 square meters. Storage area in 2,000 square meters.